Dollar Stays Firm on Oil, Yields Ahead of FOMC Meeting

The US dollar has remained strong but largely within yesterday's trading ranges, influenced by rising oil prices and yields ahead of the FOMC meeting's conclusion tomorrow.

Yesterday, euro selling continued in North America, pushing the single currency below $1.1525, its lowest level in a month. In contrast, the offshore yuan was relatively unchanged against the US dollar, making it the top-performing emerging market currency.

The FOMC meeting's outcome is still uncertain, but Fed funds futures currently indicate nearly a 95% chance of a rate hike, with many predicting a second increase following this one. The greenback's stability is also being supported by rising oil prices and yields.